PlayStation is not new for the people who are into gaming but the recent news about its production manufacturing cost may surprise gamers. PlayStation was always something that I desired and then on my 16th birthday, my father gifted it to me. Since then I have been playing multiple games in my free time.
But this news about the manufacturing cost of the PlayStation 5 shocked me. Truly speaking, I had never thought about the manufacturing cost of PlayStation till now.
Sony’s PlayStation is a big competitor of Microsoft’s Xbox. I like Xbox but I find PlayStation more user-friendly. According to Bloomberg, the manufacturing cost of PlayStation 5 has gone around $450. This is just the manufacturing cost, not the retail price.
What is the reason for the rise in Manufacturing cost?
This rise in the price is mostly due to the scarcity of some rare components that are used in the PlayStation. DRAM and NAND Flash memory are the two components that have led to this increase in price.
The scarcity of these two components is mostly have risen as most of the smartphones are using these components too and therefore, the demand for these two products has risen. According to Sony, they are not getting any reliable source for getting these two components.
However, this time Sony has got itself into a split decision and is confused to sell its gaming console at loss or make a profit from it. However, if you look at the marketing side of it then it’s clear that even if they sell it at some loss the subscription plans and the games would certainly make that loss to come at a profit.
In spite of the struggle in setting up the price, Sony has always thought about using lavish components and making the console damn cool for its users. The cooling system which costs just a few dollars and can be bought by the customers separately, Sony has put it packed inside making sure that the users would not have to face any difficulty or lag while playing.
The estimated Price and the struggle
Earlier while the launch of PlayStation 4 also, the report from HIS Markit said that the cost of the manufacturing of PlayStation 4 was $381. However, the PlayStation 4 was sold at a retail price of $399, which is just a little margin of $18. Nobody had ever thought about such a low margin by Sony but still, it grabbed the attention of the users and Sony made a huge profit from PlayStation 4.
Maybe the reason for the profit would be the subscription fee and games but still, Sony knew it how PlayStation 4 could be profitable for the company.
In a similar way, the manufacturing cost of PlayStation might go around $450 but with just a little margin of $20 making the retail price of PlayStation 5 $470, the company can make a profit.
More from Sony
According to a Bloomberg report, Sony is also planning to come with a newer version of PlayStation and that would likely come after the release of PlayStation 5. This new version would be PlayStation VR.
I think with VR, PlayStation is going to grab the attention of all the gamers and it would certainly put it mote above Microsoft’s Xbox. However, most of the games are going to be available on PlayStation 4 also. So, it is likely that the conversion from normal PlayStation to VR might be a little slow.
Is Microsoft waiting for E3 2020?
It is possible that Microsoft is waiting for the E3 2020 and then it would probably release the price of its latest Xbox X series.
Therefore, it is also being said that Sony might be waiting for the price of the Xbox X series and then it would reveal the PlayStation 5 price.
Sony has also announced that like the previous year, it would be missing the E3 2020 too. Sony has not yet even revealed anything about PlayStation 5 except the LOGO. On the other hand, Microsoft has already revealed the hardware for its Xbox X series.
This patient watch of Sony might be a clear indication that how it would be revealing its new monster.
Wrapping it up
I think that it is possible that the price of Sony’s PlayStation 5 would be available in the market at a loss or with just a small margin as it is clear that the company is going to generate more revenue from its subscribers and the games.
This is not a new thing from the company and it has done it earlier. To remain in the competition with Microsoft it would certainly sell its console at the competitive price and make it available for every gaming enthusiast.